Apple Working To Allow iPhone & iPad Users To Sideload Apps Outside The App Store Following New EU Law

Apple Inc.'s engineers are reportedly working to open up key elements of the Smartphone giant's platforms, which among other things will make it possible for customers to download third-party software to their iPhones and iPads without using the company’s App Store.

This is part of a sweeping overhaul aimed at complying with strict European Union requirements coming in 2024, as part of the block's recently passed Digital Markets Act, which takes effect in the coming months. The law requires technology companies to allow the installation of third-party apps and let users more easily change default settings. The rules also demand that messaging services work together and that outside developers get equal access to core features within apps and services.

The relevant rules in the Digital Markets Act apply to technology companies with market valuations of at least $80 billion and a minimum of 45 million monthly users within the EU.

Regulators and software makers have for years, complained that Apple and Google, wield too much power as gatekeepers of app distribution. However unlike the former's closely guarded App Store, Android phone users can already sideload apps sidestepping the Play Store.

The Cupertino-based company is reportedly exploring ways to cling to the 30% commission it imposes on payments, by mandating certain security requirements even if software is distributed outside its store. Such apps may need to be verified by Apple -- a process that could carry a fee.

Apple is working to open more of its private application programming interfaces, or APIs, to third-party apps. Those are the underlying frameworks that allow apps and features to interact with Apple’s hardware and core system functions. The company will reportedly remove the requirement that third-party web browsers like Brave, use WebKit, Apple’s Safari browsing engine.

Engineers at Apple are also working to open up other features to third-party apps, including more camera technologies and its near-field communications chip.  Currently, only the company’s Wallet app and Apple Pay service can use the NFC chip to enable mobile wallet functionality. The company has faced pressure to let third-party financial apps access the same capability. It has reportedly not made a decision on how how far to open up iMessage and its Messages app to third-party services -- another requirement of the Digital Markets Act.

This wouldn’t be the first time Apple had to make major changes to abide by local laws. The company is also planning to use a USB-C connector on the next iPhones in 2023 instead of Lightning.

The EU has threatened fines of as much as 20% of a company’s annual global revenue if they repeatedly violate the Digital Markets Act. Apple generated nearly $400 billion in worldwide revenue in fiscal 2022, and about $95 billion in revenue from Europe.

Apple has faced criticisms and legal challenges in recent years over its App Store rules. Companies like Spotify, Epic Games and others have clashed with the Cupertino-based company.

New Twitter owner Elon Musk and Meta CEO Mark Zuckerberg recently criticized Apple over its App Store policy.